BILL NUMBER: SB 1395	CHAPTERED  09/01/00

	CHAPTER   279
	FILED WITH SECRETARY OF STATE   SEPTEMBER 1, 2000
	APPROVED BY GOVERNOR   AUGUST 31, 2000
	PASSED THE SENATE   AUGUST 22, 2000
	PASSED THE ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   JUNE 22, 2000
	AMENDED IN ASSEMBLY   JUNE 6, 2000
	AMENDED IN SENATE   APRIL 11, 2000
	AMENDED IN SENATE   MARCH 30, 2000

INTRODUCED BY   Senator Monteith

                        JANUARY 26, 2000

   An act to amend Sections 11010.2, 11010.3, and 11011 of, and to
add Sections 11010.10 and 11010.35 to, the Business and Professions
Code, relating to subdivided lands.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1395, Monteith.  Real Estate Commissioner:  subdivided lands.
   (1) Existing law provides for the regulation of real estate
transactions by the Real Estate Commissioner, including subdivided
lands transactions.
   This bill would exclude from these provisions the proposed sale or
lease of 5 or more lots, parcels, or other interests in a
subdivision or the sale of one or more lots or parcels in a
subdivision where the lot or lots, or parcel or parcels, are intended
to be subdivided into 5 or more lots or other interests, as
specified, provided that specified conditions are met, and would
exclude the proposed sale or lease of lots or other interests in a
subdivision in which the lots or other interests are limited to
commercial or industrial uses by zoning or are limited to that use by
a declaration of covenants, conditions, and restrictions, which
declaration has been recorded, as specified.
   (2) Existing law also exempts specified sales or leases of lots or
other subdivision interests from the filing of a specified public
report with the Department of Real Estate and authorizes the Real
Estate Commissioner to prescribe filing fees by regulation in
connection with applications to the department pursuant to these
provisions.
   This bill would authorize a person who plans to offer for sale or
lease lots or other interests in a subdivision that are exempt from
these provisions to submit an application, along with any required
supporting documentation, to the commissioner requesting review of
the declaration, and would require the commissioner to notify the
applicant of any deficiency or inadequacy in the declaration within
60 days of its receipt or the declaration is deemed approved.  The
bill would also require notice to an applicant that a revised
declaration, following the first notice of deficiency or inadequacy,
is deficient or inadequate within 30 days of receipt and would
require the commissioner, upon approval of the filing, to give notice
to the applicant.  The bill would also provide that the declaration
is approved for a subsequent notice of intent filing for any public
report for the subdivision identified in the application, as
specified, and would authorize the commissioner to charge a filing
fee to review a declaration not to exceed $200.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11010.2 of the Business and Professions Code is
amended to read:
   11010.2.  (a) As used in this section:
   (1) "Quantitative" means the number and type of documents required
to make the filing substantially complete, as defined in the
regulations of the commissioner, without regard to the content of
those requirements.
   (2) "Qualitatively complete" means that all deficiencies and
substantive inadequacies contained in the documents that were
required to make the filing substantially complete have been
corrected.
   (3) "Substantially complete" means that a notice and application
contain all requirements as set forth in the regulations of the
commissioner.
   (b) Upon receipt of a notice of intention pursuant to Section
11010 and an application for issuance of a public report, the
commissioner shall review the notice and application to determine if
the notice and application are substantially complete, with respect
to quantitative requirements.  The commissioner shall notify the
applicant in writing of that determination within 10 days of receipt
of the notice and application.
   (1) If the notice and application are not substantially complete
with respect to the quantitative requirements pursuant to this
subdivision, the notification shall specify the information needed to
make the notice and application substantially complete.  Upon
receipt of any resubmittal of a notice and application, the
commissioner shall notify the applicant in writing of that
determination within 10 days of receipt of the notice and
application.
   (2) If the commissioner determines that the notice and application
are substantially complete with respect to the quantitative
requirements pursuant to this subdivision, the commissioner shall
provide the applicant with a list of all deficiencies and substantive
inadequacies necessary for the notice and application to be
qualitatively complete, within 60 days of that determination, in the
case of subdivisions specified in Section 11000.1 or 11004.5, and
within 20 days of that determination, in the case of other
subdivisions.
   (c) Upon receipt of all documents, materials, writings, and other
information submitted in response to the list in paragraph (2) of
subdivision (b), the commissioner shall notify the applicant whether
the notice and application are qualitatively complete within 30 days,
in the case of subdivisions specified in Section 11000.1 or 11004.5,
and within 20 days of receipt, in the case of other subdivisions.
If the application and notice are not qualitatively complete, the
notification shall include a list of any remaining deficiencies and
substantive inadequacies.  Upon receipt of any resubmittal of
documents, materials, writings, and other information in response to
a list of any remaining deficiencies and substantive inadequacies,
the commissioner shall provide notification within the time limits
specified in this subdivision.
   (d) The commissioner shall issue a public report within 15 days,
in the case of a subdivision specified in Section 11000.1 or 11004.5,
or 10 days, in the case of other subdivisions, after the notice and
application are determined to be qualitatively and substantially
complete, and submittal of recorded or filed instruments and evidence
of financial arrangements required by the commissioner.
   (e) Upon receipt of an application for approval of a declaration
as provided in Section 11010.10, the commissioner shall notify the
applicant of any deficiency or inadequacy in the declaration within
60 days of its receipt.  The commissioner shall notify the applicant
of any deficiency or inadequacy in a declaration that has been
revised following the first notice of deficiency or inadequacy within
30 days of its receipt.
   (f) The commissioner shall adopt regulations, in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code, that define "substantially
complete" and that list all the requirements necessary for a notice
of intention and application to be considered "substantially
complete."
   (g) The commissioner may adopt emergency regulations, in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, to increase, as set
forth below, those time periods specified in subdivisions (b), (c),
and (d), upon a showing that the number of notices of intention and
applications for a subdivision public report filed with the
department for any immediately preceding six-month period has
increased by more than 15 percent over the monthly average number of
notices and applications filed for the base period commencing July 1,
1983, and ending June 30, 1986:
   (1) The time for issuing the notice provided in subdivision (b)
shall increase to 15 days.
   (2) The time for providing the listing required by paragraph (2)
of subdivision (b) shall increase to 90 days, in the case of
subdivisions specified in Sections 11000.1 and 11004.5, and to 30
days, in the case of other subdivisions.
   (3) The time period provided in subdivision (c) for responding to
receipt of documents intended to correct deficiencies shall be 30
days without regard to the type of subdivision being processed.
   (4) The time periods provided in subdivision (d) within which the
commissioner is required to issue a public report in the case of
subdivisions specified in Sections 11000.1 and 11004.5, shall
increase to 30 days and in the case of other subdivisions shall
increase to 15 days.
   This section does not apply to filings made exclusively under
Section 11010.1.  Nothing in this section requires the commissioner
to issue a public report where grounds for denial exist, provided
that issuance of a public report shall not be denied for inadequate
information if the cause thereof is the commissioner's failure to
comply with this section.
   Notwithstanding other provisions of this section, the commissioner
shall not be required to issue a public report if grounds for denial
exist under Section 11018 or 11018.5.  However, the commissioner may
not base the denial of a public report on the lack of adequate
information if the commissioner has not acted within the time periods
prescribed in this section.
  SEC. 2.  Section 11010.3 of the Business and Professions Code is
amended to read:
   11010.3.  The provisions of this chapter shall not apply to the
proposed sale or lease of lots or other interests in a subdivision in
which  lots or other interests are (a) limited to industrial or
commercial uses by zoning or (b) limited to industrial or commercial
uses by a declaration of covenants, conditions, and restrictions,
which declaration has been recorded in the official records of the
county or counties in which the subdivision is located.
  SEC. 3.  Section 11010.10 is added to the Business and Professions
Code, to read:
   11010.10.  A person who plans to offer for sale or lease lots or
other interests in a subdivision which sale or lease (a) is not
subject to the provisions of this chapter, (b) does not require the
submission of a notice of intention as provided in Section 11010, or
(c) is subject to this chapter and for which the local jurisdiction
requires review and approval of the declaration, as defined in
subdivision (h) of Section 1351 of the Civil Code, prior to or
concurrently with the recordation of the subdivision map and prior to
the approval of the declaration pursuant to a notice of intention
for a public report, may submit an application requesting review of
the declaration, along with any required supporting documentation, to
the commissioner, without the filing of a notice of intention for
the subdivision for which the declaration is being prepared.  Upon
approval , the commissioner shall give notice to the applicant that
the declaration shall be approved for a subsequent notice of intent
filing for any public report for the subdivision identified in the
application, provided that the subdivision setup is substantially the
same as that originally described in the application for review of
the declaration.
  SEC. 4.  Section 11010.35 is added to the Business and Professions
Code, to read:
   11010.35.  (a) The provisions of this chapter shall not apply to
the proposed sale or lease of five or more lots, parcels, or other
interests in a subdivision or the sale of one or more lots or parcels
in a subdivision where the lot or lots or parcel or parcels are
intended to be further subdivided into five or more lots, parcels, or
other subdivision interests as defined in Sections 11000, 11000.1,
and 11004.5, to any person who acquires the lots, parcels, or other
subdivision interests for the purpose of engaging in the business of
constructing residential, commercial, or industrial buildings, or for
the purpose of resale or lease of the lots, parcels, or other
subdivision interests to persons engaged in this business, provided
that the purchase or lease agreement or a separate disclosure
document includes a statement or provision that the purchaser or
lessee is required to comply with the applicable provisions of this
chapter prior to offering for sale or lease any lot, parcel, or other
subdivision interest acquired pursuant to the exemption granted by
this subdivision.
   (b) The exemption provided by subdivision (a) does not apply to a
proposed sale or lease of lots, parcels, or other subdivision
interests that is done for the purpose of evading any other provision
of this chapter.
   (c) The provisions of subdivision (a) are intended to clarify the
application of this chapter to the commercial sale or lease of
residential subdivision interests and should not be interpreted to
impose requirements on transactions entered into prior to the date on
which this section became operative.
  SEC. 5.  Section 11011 of the Business and Professions Code is
amended to read:
   11011.  (a) The commissioner may by regulation prescribe filing
fees in connection with applications to the Department of Real Estate
pursuant to this chapter that are lower than the maximum fees
specified in subdivision (b) if the commissioner determines that the
lower fees are sufficient to offset the costs and expenses incurred
in the administration of this chapter.  The commissioner shall hold
at least one hearing each calendar year to determine if lower fees
than those specified in subdivision (b) should be prescribed.
   (b) The filing fee for an application for a public report to be
issued under authority of this chapter shall not exceed the following
for each subdivision or phase of a subdivision in which interests
are to be offered for sale or lease:
   (1) A notice of intention without a completed questionnaire:  One
hundred fifty dollars ($150).
   (2) An original public report for subdivision interests described
in Section 11004.5:  One thousand seven hundred dollars ($1,700) plus
ten dollars ($10) for each subdivision interest to be offered.
   (3) An original public report for subdivision interests other than
those described in Section 11004.5:  Six hundred dollars ($600) plus
ten dollars ($10) for each subdivision interest to be offered.
   (4) A conditional public report for subdivision interests
described in Section 11004.5:  Five hundred dollars ($500).
   (5) A conditional public report for subdivision interests other
than those described in Section 11004.5:  Five hundred dollars
($500).
   (6) A preliminary public report for subdivision interests
described in Section 11004.5:  Five hundred dollars ($500).
   (7) A preliminary public report for subdivision interests other
than those described in Section 11004.5:  Five hundred dollars
($500).
   (8) A renewal public report for subdivision interests described in
Section 11004.5:  Six hundred dollars ($600).
   (9) A renewal public report for subdivision interests other than
those described in Section 11004.5:  Six hundred dollars ($600).
   (10) An amended public report for subdivision interests described
in Section 11004.5:  Five hundred dollars ($500) plus ten dollars
($10) for each subdivision interest to be offered under the amended
public report for which a fee has not previously been paid.
   (11) An amended public report to offer subdivision interests other
than those described in Section 11004.5:  Five hundred dollars
($500) plus ten dollars ($10) for each subdivision interest to be
offered under the amended public report for which a fee has not
previously been paid.
   (c) The filing fee to review a declaration as described in Section
11010.10 shall not exceed two hundred dollars ($200).
   (d) The actual subdivision fees established by regulation under
authority of this section and Section 10249.3 shall not exceed the
amount reasonably required by the department to administer this part
and Article 8 (commencing with Section 10249) of Chapter 3 of Part 1.

   (e) All fees collected by the department under authority of this
chapter shall be deposited into the Real Estate Fund under Chapter 6
(commencing with Section 10450) of Part 1.  All fees received by the
department pursuant to this chapter shall be deemed earned upon
receipt.  No part of any fee is refundable unless the commissioner
determines that it was paid as the result of a mistake or
inadvertence.
   This section shall remain in effect unless it is superseded
pursuant to Section 10226 or subdivision (a) of Section 10226.5,
whichever is applicable.
